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Item No. 3. <br />Meeting Date: December 1, 2025 <br />Type of Business: Council Work Session <br />City Administrator Review: ______ <br /> <br />City of Mounds View Staff Report <br />To: Honorable Mayor and City Council <br />From: Gayle Bauman, Finance Director <br />Item Title/Subject: Review Draft Budget for 2026 <br /> <br />Staff is requesting City Council to review and provide feedback on the attached Draft Budget for the 2026 fiscal <br />year. <br /> <br />GENERAL FUND (Fund 100) <br />Council eliminated the General Fund deficit and balanced the budget in 2025. This involved accounting for 100% <br />of Local Government Aid (LGA) funds as revenue in the General Fund. Council has indicated they would like to <br />start reducing reliance on LGA funds for operations and instead program them for capital items. This way, if the <br />State does decide to reduce or unallot them in the future, it wouldn’t have a significant impact on operations. <br /> <br />Revenues <br />100-3180 Franchise taxes are trending up. <br />100-3356 Police Training Aid funding was reduced by the legislature. <br />100-3357 Budget assumes the City will be reimbursed 100% of the Peace Officer Benefit payments. <br />100-3432 Expenditures will need to be increased for any tree revenue booked. <br />100-3610 Unsure what Interest Revenue will be in 2025. <br />100-3631 Water Tower rental payments are up due to addition of the AT&T lease. <br /> <br />Wages and benefits <br />The 2026 draft budget has been prepared assuming a 4.0% wage adjustment for staff not covered by a labor <br />agreement, an increase of $30 per month for insurance benefits and an increase to the family HSA contribution <br />of $25 per month. The cost of the new Paid Family and Medical Leave program has also been factored in. <br /> <br />Total FTE’s for the city are going up by 0.40. This is due to the increase of hours for one of our part time positions <br />from 25 to 29 hours a week and increasing the hours of the Storm Water Technician to full time. <br /> <br />Advisory Commissions (100-4110) <br />$2,000 has been included in the budget for the Community Engagement Committee. <br /> <br />Administration (100-4130) <br />30% of the Asst. City Administrator/Community Development Director’s time is being moved here. <br /> <br />Elections (100-4140) <br />New voting equipment is set to be purchased by Ramsey County. The city’s share is estimated at $52,000 - <br />$60,000. One quarter of the cost is budgeted for 2026. <br /> <br />